A plan that reports the units or costs of merchandise to be purchased by a merchandising company during the budget period is called a:

The correct statement is that a plan that reports the units or costs of merchandise to be purchased by merchandising company is called a

It denotes and helps in understanding the formulation of inventories and free cash flows in the hands of the company as on the date of preparation of budgets by a merchandising company.

Hence, the correct statement is that a report which suggests merchandise to be purchased by a company for a given accounting period is known as merchandise purchase budgeting report.

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Merchandise purchases budget.

Explanation:

The Merchandise purchases budget is a plan that reports the units or costs of merchandise to be purchased by a merchandising company during the budget period.

It is prepared by a retail company to make sure it has sufficient inventory on hand. It uses the budgeted sales figures from the Sales Budget to decide the quantity of inventory to be bought at each period

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